Yield - APY

Swich introduces a unique mechanism known as a liquid staking yield aggregator on the Ethereum network. These combined yield sources maximize yield for stakers.

Yield Protocols

• Frax Staked Ether (Integrated)

• Lido (soon)

• Rocket Pool (soon)

Yield Generation Summary

• ETH Staking: Users stake ETH and receive ssWETH in return.

• Yield Protocols: Deposited ETH are auto-deposited to integrated yield protocols. These protocols enable validator operations on the Ethereum network, ensuring the blockchain's security and earn rewards in native validation yield.

• Reward Distribution: Utilizing advanced multisig technology, reward earned are distributed back to the deposit pool, increasing the value of ssWETH tokens held by users.

APY

This is based on the network's consensus and validation work, and it's connected to the operational effectiveness of the yield protocols after accounting for protocol fees.

Fee Insights

• Delegation Fee: This is a fee that could be charged by integrated protocols when a portion of the staked ETH is delegated to them. 


• Protocol Fee: Swich will deduct a 5% protocol fee from rewards added to the contract, which will be used to improve our infrastructure and create better products for our users.